The Colombo Bourse gained throughout the week especially with turnover levels improving during mid week driven by domestic participation. The benchmark was up by 54.13 points to close at 5,569.94 while the highly liquid S&P SL20 too followed suit by gaining 32.75 points to close the week at 2,627.19 points. Foreigners continued to be on a selling spree exiting from stocks, especially JKH. The Central Bank revised growth down to 3% from 4% earlier in the year, but kept policy rates unchanged on moderate inflation, international rate cuts, and expectations of lending rates.
On State Owned Enterprises (SOEs) which remains a drag on fiscal discipline, Ceylon Electricity Board (CEB) reported losses of Rs. 23.1bn during the four months ending April 2019 on cost increases amidst a breakdown of a coal plant.
With the losses being financed by bank loans, the outstanding debt has risen to Rs. 80.4 bn and has borrowed Rs. 15bn from BOC as the first instalment of its debt payment.
The cumulative market turnover for the week was reported at Rs. 2.12 bn, where the average daily turnover fell to Rs. 425 mn, lower than last week’s average of Rs. 553 mn. JKH, LHCL and MELS counters were on the radar of the investors during the week.
JKH dominated the weekly turnover board contributing 19% to the total turnover. LHCL followed suit with a 14% contribution. Volume wise, AEL and DIAL were the most sought after with a collective contribution of 18% of the total shares that changed hands throughout the week. Negotiated deals were mostly gathered in counters in the likes of JKH, MELS and SAMP. Negotiated deals accounted for 23% of the total market turnover and 8% of the total volumes during the week.
Foreign participation was aligned towards the selling side throughout the week with the exception on Monday, with CINS(X) and TJL emerged as top picks for the foreign investors. The net foreign outflow for the week reported at Rs. 363 mn.
Foreign selling accounted to the bulk of the weekly turnover. contribution. - BRS Weekly Market Report